Interesting article about Oil

wanghong

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2 Q3 [8 C; Q* yBelow is an Interesting article I found, which says that.....Do not
- L; W- a+ A! T9 {: t& _$ \) pexpect much from Crude Oil producers and future is not with the
+ w7 n. `! {9 Y5 _! Q" ?companies producing Jet fuels but Biofuels. Also no wonder if some of
, B6 g7 T- ~9 J0 f- m1 Uthese oil producer will go bankrupt or out of the business even if
( w6 |" K1 C" ~% T8 b7 hcrude prices improves. This implies also to good names such as Shell,
  S7 s& D# x- G) Q! lEXXON, BG, BP, Cheveron ....xyz.. oils

) d( _7 J4 Y4 |8 V; |! KRecently OPEC reduced crude oil production twice over just a few
* ~1 s5 i, U8 }( f9 B4 [' _0 Bmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
# ^" N8 U4 [# h5 J* Zleast $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
3 m4 C) h; H/ w" T& L5 p7 Pof so much news. These reasons are:
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3 v- S3 x7 \# M  Z1. New oil has been found in Canada, Montana, North & South Dakota and
$ C7 W& V4 U/ X4 P/ xin the ocean near Brazil. Each of these oil fields has more oil than
+ ]6 H. u$ U, H) M" O9 XArabia.
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' o4 \. d- n" I3 N  D* S. ^2. New natural gas has been found in Pennsylvania and West Virginia.
/ l) g8 R# A. J5 m2 E1 U5 O- i1 eThis is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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! ]  l: C5 f3 j/ U! m- o: R+ w4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
! x: l6 T' e5 N. \+ n0 \* ~racing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
& q1 k/ c( j8 W$ J. A/ t# ito bio-diesel producers. One pork processing plant in Oklahoma is
! E0 i4 f' V+ h* \2 \; lproducing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
, s/ j: s+ Y7 Xconstruction around the world at this time. Several hundred more are
1 C- M7 d7 J1 y, yexpected to be built in the future. Much of the energy they produce
will replace oil.

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7. Every company in any form of transportaion business is replacing
2 S+ B( m" P- U6 |older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
: L- C/ |, X& m' M" Q6 S& _equipment.


& j- k5 V: g. _& ]Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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4 u  O+ N/ p# @' r) M6 ?5 m, n8. Cities and counties throughout the US are selling the rights to
3 R3 C9 m9 \) Q2 S) ^" m: Ucapture methane gas from landfills. This is a huge source of gas
. l  R8 v& U8 M! Javailable at very little cost or risk. The gas is displacing crude
oil.


- [- Q8 V, |1 o- E$ h, B2 u9. Coal is being transformed into a clean burning liquid fuel. The CO2
0 y4 D6 `9 S- y0 x3 Dproduced as a byproduct is sold to oil companies for injection into
oil wells.


10. Solar, wind and ocean energy is displacing oil as an energy
0 m( _0 b* I5 @source. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
) S  K& e, F7 M% {) t& i/ wprice of crude oil but the sum of all of them together is world
( N' \  n9 f  }+ Xchanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
* \; J/ v) F$ O" |# R. N! g1 `IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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8 t5 u* V) _/ ~& X4 IThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only